Newcastle-based thermal energy storage company MGA Thermal has commenced a Front-End Engineering and Design (FEED) study for a 195 megawatt-hour electro-thermal energy storage (ETES) project at chemical and mining firm Tronox. The commercial initiative, developed in partnership with Australian energy firm Knode, represents the country’s largest industrial-scale thermal storage project.
The $2.9 million design study is co-funded by the Australian Renewable Energy Agency (ARENA), with global engineering consultancy GHD appointed to support the technical delivery. Construction at Tronox’s Kwinana facility is scheduled to begin in 2027, with full commercial operations targeted for 2028. Under a Heat-as-a-Service framework, the system will deliver approximately 20 tonnes of renewable steam per hour, reducing the facility’s carbon emissions by 38,000 tonnes annually.
The project utilizes MGA Thermal’s proprietary technology, which stores low-cost renewable electricity as latent heat inside manufactured blocks before converting it back into high-grade process steam on demand. The company recently finalized a $17 million capital raise and secured an additional $3.25 million ARENA grant to advance its commercial pipeline across the industrial manufacturing sector.
Chief Executive Officer of MGA Thermal, Mark Croudace said transitioning to the design phase is a critical step toward final investment decisions and physical deployment.
“Commencing the FEED study is a significant step – it’s where engineering challenges are resolved, and the pathway to FID and construction becomes real,” Mark said.
“This project is the first of several we are actively developing, and it demonstrates that MGA Thermal’s technology is ready to scale across industrial and manufacturing sectors.”
A pre-feasibility study completed by MGA Thermal and Knode in late 2025 indicated that the ETES system can achieve cost parity with traditional fossil-fuel-reliant manufacturing infrastructure, addressing a primary economic barrier to industrial electrification.
Chief Executive Officer of Knode, Chris Nelson said the project establishes a commercial template for decarbonising heavy industrial processes such as mineral refining and chemicals manufacturing.
“Progressing to the FEED stage is incredibly important, not just for our project with MGA Thermal, but for the fact that it demonstrates a viable way to electrify heavy industry,” Chris said.
“Keeping industries like mineral processing, refining, and materials manufacturing in Western Australia is going to be highly dependent on being able to decarbonise economically.”
Mark noted that achieving cost competitive baseload thermal power allows early adopters within heavy manufacturing to insulate their operations against volatile fossil fuel supply lines.
“Industrial operators have been waiting for clean energy to make economic sense at their scale,” Mark said.
“Price parity with fossil fuels has been the bar. We have cleared it. Now, with Knode, we’re building. While the upfront investment is significant, first movers will reap the benefits, leveraging available funding to lock in lower long-term energy costs and reduce exposure to rising fossil fuel prices.”
IMAGE | Newcastle clean-tech developer MGA Thermal commences design study for major industrial energy project
